Congress' stimulus bill is now the 'most important data point' for Big Tech, DA Davidson's Tom Forte says after blockbuster earnings

• Tom Forte said what happens with the next stimulus bill is the "most important data point for technology stocks."
• The senior research analyst at DA Davidson told Bloomberg the $600-a-week stimulus is benefiting the results of a number of companies.
• Forte remains a tech bull and raised his price targets for both Apple and Amazon.
• Read More on Business Insider.

Tom Forte, senior research analyst at DA Davidson, told Bloomberg on Friday that the "sequel of the CARES Act" is the "most important data point for technology stocks."

The analyst said that a number of companies have suggested the current stimulus, which provides an extra $600 a week in unemployment benefits, is having a benefit on their results. A decline in the amount of money given per week may have a "material impact on big tech's stock performance," Forte said.

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Forte added that a recent University of Chicago study showed 68% of recipients of unemployment made more money on $600 a week than they did while they were working. He's closely monitoring whether Congress will reduce the amount of stimulus next week, and said, "If 600 a week becomes 200 a week, that is a huge difference."

However, Forte remains bullish on tech stocks. He reiterated his buy ratings for both Apple and Amazon, and raised his price target for both companies following Thursday's earnings reports. Forte's Apple price target of $480 is one of the highest on Wall Street and is over $120 more than his previous target. Forte called Apple a "consumer staple," and said the need for laptops and tablets during the pandemic may have contributed to Apple's 11% rise in revenue in June.

Forte raised his price target for Amazon to $3,800 from $2,625. He called the surge in Amazon's retail sales "impressive" but noted that the company's cloud computing revenue continues to decelerate. Adding in that Amazon is expected to spend $2 billion in September to combat COVID-19, Forte said that the pandemic still represents "challenges to Amazon and not just excellent opportunities."